Bank have in general the standard of never allowing more than a 5% to be split between the two brokers involved - listing broker and buyer broker.
However I have seen cases where only 1% was offered.
In most cases, the listing states that commissions are not guaranteed, which in plain English could mean that the bank can pay the brokers whatever they want at the moment of the closing.
In effect, in real life, when the broker has presented a customer to a seller (in this case the bank), he will not be able to back up if a deal is agreed upon, where the bank offers a very low commission.
I have seen one case of a deal where the bank offered $ 1,000 flat in a $ 200,000 listing.
It could sound enough. But it does not when you realize that most realtors do a few sales every year, after hard work, hundreds of showings and uncountable calls and "busted deals".
Henry B. Nathan is a Florida Realtor at United Realty Group Inc.Visit my website: http://www.condo-southflorida.com/where you can search for Aventura Condos, Florida Condos,
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My name is Henry B. Nathan
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2 comments:
Short sale is a bit tricky business, (un)fortunately we don't see it often here in Canada, but I think it's like every other business - if you specialize, if you know your market well and you are good in doing short sales, you can have nice profit. Banks are like all other sellers, they like high prices and quick dealing - if you are able to provide this, you can negotiate the rest...
Regards,
Julie
Julie,
What is said is very reasonable. You can make a very nice profit regardless of the commission percentage. What bothers me is the lack of rules. It's true that banks like high prices, but it's not so evident that banks like quick dealing. I believe that most of them are just starting to organize adequately staffing their "loss mitigation" divisions which, as I wrote in another post, often seem "clueless". Hopefully before their losses get out of control they will correct.
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